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Vietnam Energy Forum

The Government Conclusion on the key power projects and draft PDP VIII

 - The Government Office has just issued Announce No. 238/TB-VPCP on the conclusion of Deputy Prime Minister Le Van Thanh at the meeting of the National Steering Committee on Electricity Development for reviewing the implementation of the key power projects and draft content of Power Development Planning VIII (PDP VIII).

Previously, on September 1, 2021, at the Government headquarters, Deputy Prime Minister Le Van Thanh, Head of the National Steering Committee on Electricity Development (Steering Committee) chaired a meeting to review the situation to implement the key power projects and the draft content of PDP VIII.

I. General assessment:

In implementing PDP VII (adjusted project), the relevant ministries, agencies, localities, and investors, especially EVN, made great efforts and actively performed the assigned tasks on the investment developing power plants and grids; Thereby, the national power system has been synchronously, modernly developed and ensured sufficient electricity supply for the socio-economic development of the country and people’s life.

However, reports from the Ministry of Industry and Trade, Electricity of Vietnam (EVN), Vietnam Oil and Gas Group (PVN) and Vietnam National Coal and Mineral Industries Group (TKV) show that most of the projects in adjusted PDP VII, especially large coal-fired thermal power plants and some interregional transmission grid projects are behind the approved plans

There are some shortcomings and inadequacies in investment, production, business, and state management in the power sector. These shortcomings and inadequacies must be fully researched and evaluated by all levels and sectors and focused to effectively overcome them.

II. Objectives, tasks and solutions in the coming time:

1. Ensuring sufficient electricity supply for socio-economic development and people's life, preventing power shortages, developing the electricity sector to become a sustainable, transparent and sound competitive industry are the important tasks in the operation of the Government and the Prime Minister.

2. Resolutely taking measures to speed up the construction investment progress of power projects approved in planning and plans; ensuring quality and safety during their construction investment and operation process; preventing losses and wastes in construction investment, management and operation of power projects in order to effectively use investment capital.

3. Studying and perfecting mechanisms and policies for implementing construction investment in the power projects to ensure reasonable, appropriate, effective investment attraction, sustainable development and healthy competition

4. Studying and determining a reasonable power source structure to exploit the strong domestic potential; rationally developing renewable energy projects in combination with strengthening environmental protection measures for the coal-fired thermal power plants; reasonable developing power plants in the regions for ensuring the safety of electricity supply, reducing long-distance power transmission and electricity losses.

5. The members of the Steering Committee need to promote the spirit of solidarity, the highest personal responsibility, proactively handle the work under their authority, and promptly report to the Head of the Steering Committee on issues beyond their authority in the spirit of innovation in thinking and doing to achieve common goals for National interest.

III. The tasks of the relevant ministries and agencies:

In order to realize the above objectives, tasks and solutions, thoroughly overcome the shortcomings and inadequacies in investment, production and business activities and in the state management of the electricity sector, the relevant ministries, agencies and localities should focus on implementing the following key contents:

1. Ministry of Industry and Trade:

Firstly: renovating the supervising activities for the progress of the power projects, especially the key projects; solving the problems under the competence and coordinating with competent agencies in handling difficulties and problems in order to promote the progress of projects, and promptly report to the Prime Minister any problems beyond their competence. Urgently reviewing and reporting to the Prime Minister the list of the key power projects to focus on monitoring and supervising during the implementation process.

Secondly: Studying the mechanism for handling projects with very slow and stagnant progress, affecting the power supply.

Thirdly: Urgently finalizing PDP VIII under the direction of the Prime Minister and Deputy Prime Minister Le Van Thanh, expressed in documents No. 133/TB-VPCP dated May 29, 2021, No. 91/TB- VPCP dated May 3, 2021, No. 189/TB-VPCP dated July 17, 2021 of the Government Office; carrying out appraisal procedures and submitting it to the Prime Minister before September 25, 2021.

Fourthly: Reviewing the mechanism on the electricity prices at all stages in the recent time in our country, especially the generation prices of the power plants; studying electricity price experience, especially generation prices; reporting to the Prime Minister on the current status and solution for perfecting the mechanisms and policies to reasonably develop power plants in coming time, ensure sound and transparent competition and reduce electricity prices.

Fifthly: Reviewing the current regulations on the competitive electricity market to ensure the requirements for attracting reasonable development investment in power plants and ensuring electricity supply; continuously consolidating and developing the competitive electricity market in close connection with the power sector restructure according to approved projects; reviewing and updating the new guidelines and policies to perfect the project on restructuring electricity sector for serving the competitive retail electricity market in Vietnam.

Sixthly: Perfecting the activity plan in 2021 of the Steering Committee according to the opinions of the members of the Steering Committee on the spirit of ensuring the comprehensive functions assigned by the Prime Minister with the focused activities.

Seventhly: Urgent perfecting and issuing the Operating Regulation of the Steering Committee with implementing the regular meeting every 6 months and a meeting at least every 3 months for reviewing the progress of the key projects.

Eighthly: Overall reviewing coal import activities in the first 9 months of 2021; proposing the most transparent and effective management mechanism on coal import for domestic demand in the coming time.

2. The Ministry of Agriculture and Rural Development should speed up handling the policies on changing forest use purpose for the key power projects, especially for the power grid projects; immediate handling within the competence and the law stipulations the recommendations of the Ministry of Industry and Trade in Document No. 36/BCDQGĐL-VP dated August 23, 2021.

3. The Ministry of Planning and Investment should speed up the appraisal of investment policies in power projects by its competence for the competent authorities to consider and decide as soon as possible; urgent perfecting the draft Decree to replace Decree No. 56/2020/ND-CP dated May 25, 2020 under the direction of Deputy Prime Minister Pham Binh Minh in Document No. 225/TB-VPCP dated August 30, 2021 of the Government Office to decide construction investment policy for the O Mon 3 Thermal Power Project.

4. The Committee for Management of State Capital at Enterprises, by its competence and law regulations, is responsible for reviewing and promptly handling projects of EVN, PVN, and TKV; urgently handling the existing problems related to Thai Binh 2 and Long Phu 1 coal-fired Thermal Power Projects.

5. The relevant Provincial People's Committees should provide maximum support in compensation and site clearance for the power projects, especially transmission grid projects in their localities; strengthening activities on the land management to avoid disputes and lawsuits in implementing the power projects; speeding up the survey implementation, setting unit prices and approving compensation unit prices for the power projects.

6. The Electricity of Vietnam, Vietnam Oil and Gas, Vietnam Coal - Mineral Industry groups are responsible for focusing on directing and speeding up the implementation of the assigned projects for ensuring progress and quality and efficiency of the projects; resolutely avoiding losses and waste in the construction investment process.

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